Singapore's rise as a global center for managing money has taken a big step with assets under management in the city state rising by nearly a quarter last year, putting it closer to matching Switzerland as a wealth management hub.
Funds managed in the city state rose 22 percent to S$1.63 trillion ($1.29 trillion), from S$1.34 trillion a year previously, the Monetary Authority of Singapore (MAS), the central bank, revealed on Tuesday. In comparison, there were SF2.8 trillion ($2.9 trillion) of assets under management in Switzerland last year, according to the Swiss Bankers Association,
Asia was the biggest destination for investments from funds handled out of Singapore, accounting for 70 percent of all assets under management, up from 60 percent the previous year. Assets managed by hedge funds rose almost 8 percent to $77.5 billion from the previous year.
Hong Kong and Singapore are closing the gap with Switzerland and London as they benefit from the growing wealth of a new generation of Asian business people. Switzerland's private banking industry is suffering from a damaging row with the US over some Swiss banks' alleged complicity in tax evasion by US citizens.